Analyses

Fidelity Files With SEC for New Bitcoin Investment Fund – Price Analysis, 31 Aug 2020

President of Fidelity Investments Corporation Peter Jubber has filed paperwork with the US Securities and Exchange Commission (SEC) to be able to launch a new Bitcoin investment fund, according to Forbes.

The fund is called Wise Origin Bitcoin Index Fund and it was established earlier this year. Its office is located in the same building as Fidelity Investments' headquarters in Boston. So far, the fund has no investors, but the minimum threshold is already known — $100,000.

The crypto community welcomed the news since Fidelity is one of the largest investment funds in the world with a combined total customer asset value of around $8 trillion.

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Source: Twitter

Another positive news for the BTC hodlers is the fact that Bitcoin miners continue to accumulate their crypto assets as they expect to be able to sell their Bitcoins at relatively higher levels. According to data by Glassnode and CoinDesk, the total amount of BTC in the miner wallets is at the highest level for the past two years:

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Source: CoinDesk, Glassnode

Last week the prices of the major cryptocurrencies were under pressure. Now the market is trying to reverse the negative trend. At the time of writing, according to Coin360.com, one Bitcoin costs €9,719.85 (+0.25%), one Ethereum – €352.05 (+4.01%), and one Litecoin – €51.22 (+5.20%):

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Source: Coin360.com (Daily crypto market performance)

Now let's study the price charts of the major cryptocurrencies against the euro.

BTC/EUR

In the weekly chart (1W), BTC/EUR formed a Hammer candlestick last week:

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The Technical Analysis theory says that Hammers usually occur after a price decline and indicate a potential price reversal to the upside. 

If the bulls manage to regain control over the market, Bitcoin will easily surpass the psychological level of €10,000 per one digital coin.

However, we would like to see a confirmation of the bullish signal coming from the Hammer, i.e. a bullish candlestick immediately after the Hammer, to consider it as a renewal of the uptrend.

If BTC/EUR cannot pick up momentum, then the Hammer will be unsuccessful and the bears will try to sink the price of the cryptocurrency at least to the lowest level of the previous week, or a level of approximately €9,400 per one digital coin.

ETH/EUR

In the weekly price chart (1W) of ETH/EUR, the recent Bearish Engulfing turned out to be unsuccessful:

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As seen in the chart above, after the Bearish Engulfing a relatively big bullish candlestick formed, thus canceling the bearish signal.

We view the unsuccessful Bearish Engulfing as proof that the bulls are aggressively defending the current price levels and that they will probably even try to push the price up at least to the highest level of the previous week, or a price of approximately €378 per one digital coin.

LTC/EUR

In the 4-hour chart (4H), the price of Litecoin has rebounded from the lower line of the uptrend:

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Our attitude towards Litecoin remains bullish. That's why we think that LTC/EUR will continue to fluctuate within the trajectory of the uptrend. 

As mentioned in our previous analysis, we view the upper part of the recent consolidation range (a level of approximately €46 per one digital coin) as a support level for LTC/EUR, and the lower part of the range of the previous local high (a level of approximately €62 per one digital coin) as a solid resistance level.

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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.


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